Thailand ready to graduate from bailout program: IMF
Thailand ready to graduate from bailout program: IMF
BANGKOK (AFP): The International Monetary Fund (IMF) said on Tuesday that Thailand would graduate from its US$17.2 billion support program in June, but warned the nascent recovery remains fragile.
The IMF said Thailand would be the first of the Asian countries to exit its program and praised its commitment to reform following its plunge into crisis in mid-1997, dragging much of the region in tow.
"It is far away from the crisis, the economy is recovering and the balance of payments is strong," visiting IMF division chief for Thailand Ranjit Taja told AFP in an interview.
"Thailand is ready to graduate from the IMF program."
His comments come at the end of the IMF's latest review of the Thai economy, in which the IMF said the economy grew 4.2 percent in 1999 and forecast five percent growth this year after a miserable double digit contraction in 1998.
"Thailand began the crisis with a much bigger problem than the others, and if you take that into account they have done very well," Taja said.
However he said that it was difficult to compare Thailand with other recipients of IMF bailouts, namely Indonesia and South Korea.
"I would rather avoid a beauty contest," he said.
IMF officials met with Finance Minister Tarrin Nimmanahaeminda and senior officials Monday to inform them that Thailand would exit the 34-month IMF program as scheduled at the end of June, Taja said.
The announcement comes as Thailand prepares to host a major United Nations-sponsored international trade conference starting this weekend which is being used as a chance to spotlight the success of reforms.
Among those attending is International Monetary Fund managing director Michel Camdessus.
As evidence mounted of economic recovery, Thailand last year stopped drawing funds from the IMF and bilateral donors, which were granted after the baht currency went into free-fall in mid- 1997.
In all, Thailand withdrew some US$14.1 billion from its bailout package, according to the IMF.
The Bank of Thailand reported as of January 21 that Bangkok had restored official foreign reserves of $33.7 billion, equivalent to 10 months of imports after they were almost completely depleted during futile efforts to prop up the currency.
Under the IMF package, Thailand was required to follow strict conditions on managing its economy, including a sweeping reform program.
Interest rates and inflation are low -- running at about one percent -- and the baht has been stable in a range of around 37 units to the dollar for months.